If You Build It . . . Endow It!

While it's not the oldest story in the book, it could come close.  A donor has a vision, and those in charge are ecstatic that someone has the resources to make their (sometimes) dreams come alive in the form of a park, performing arts center or concert series, foundation, science hall, experimental community, or anything one can affix letters to for naming rights.  The ribbon is cut, and the building or space is a successful monument in time to something very worthy.

Then . . . it happens.  Errors in decision making, maintenance costs, and changes in personas and priorities all of a sudden make a dream irrelevant.  What was seemingly a blue-ribbon idea has been cast aside in favor of the next bell or whistle with little more than an afterthought to the original intention or purpose of the physical plant or concept.

Looking at the trajectory, original donors have the option to make sure their intention stands the test of time.  Doris Duke did exactly that when her will spelled out a very specific architecture of a foundation that was established in 1996 after her death in 1993.  Other founders have not been so fortunate to find their passions taking on other avenues that abandoned the original intentions their legacies were meant to serve.

Establishing tight controls from the beginning with conditions for a specific intention helps level the playing field and assists trustees in their role to keep focused.  Narrow guardrails eliminates the need for reinvention.  Now - apply that philosophy to something physical.  Take for example an idea to take one square block in an urban core and dedicate it to glass sculpture.  Scenario: $100 million builds out the facility and secures permanent "statement pieces."  Then factor in staff, level of ongoing interest, a crack in the pond that develops over time, the cleaning of the glass exposed to unfriendly climate (example: Madeline Redstone's gift of Chihuly's "End of the Day Boat" to Eisenhower Medical Center), or any other number of details where future donors may be called to maintain a benevolent gift of the past.  When providing a gift to establish something tangible, immediately double the gift to endow its future to make sure it lives on in perpetuity or has a solid deaccession plan associated with the donation - most applicable for art which is definitely in the eye of the beholder - or a museum's Acquisitions Committee.

At the end of the day, gifts that are well-intentioned all come with a price.  The best methodology is to formalize a plan in writing in advance between the donor and recipient or custodian so that the long-term purpose can remain in tact or change with fluidity as required.

Collecting the Collector - An Arform Unto itself

The Collector as buyer or seller is a unique persona who demands a discerning eye from any vendor, especially the real estate professional.  An additional layer of technical knowledge and ability to nurture is required when venturing into a fickle space with a tremendous array of diversity.

PERSONA
Discovery is part of the client relations process.  If a broker is not "in step" with client tastes, representation is nearly impossible to source an adequate property in which to appropriately showcase a new or existing collection.  Client personality is a phenomenal window into their tolerances of certain artistic expressions and mediums.

PASSION
Exploring the creative spirit behind the client vision is a necessity as they consider their long-term purpose and goals for collecting with their own interpretive wand.  The psychology and need that collecting fulfills are as valid as the art itself.  For example, how do you counsel a man whose parents have amassed an extraordinary collection as he develops ways to differentiate his personal brand from theirs?

PLACEMENT
An intuitive edge guides the agent to be mindful of signature elements important to the collector.  Skill in placement transcends where art should go and provides assurance that aesthetic matches their goals.  Appraisers, framers, installers, transportation, lighting, security, insurers, cataloging, and art opinion leaders are relationships that must be developed to function with this demographic.

I was able to begin my path in this arena through volunteering for a major art auction committee populated by experts in the field in addition to acting as a liaison to an art collection management committee of a private club.  My knowledge was augmented further through a pivotal seminar on art appraising organized by the area's leading private advisory for personal insurance and risk analysis, Candace Jennings.  The notes from that one seminar and relationship with the presenter are still with me as guideposts from 2011.

Art moves each individual in vastly different ways.  Relationships with real estate professionals are defined by the breadth and diversity of experiences.  Proficiency in working with the creative mood of the Collector and highly technical aspects of supporting collection placement is a key tool for skilled representation.

The Lender-Trained Real Estate Agent is Top of Game

A top-producing real estate broker once said “the best agent in real estate is one who is lender-trained.”  As someone who previously managed all aspects of marketing and compliance for a mortgage firm, I had the benefit of working under the guidance of three different presidents of Oregon’s mortgage professional association and learned a great deal about how the relationships they built with industry partners made the collective work easier and produced a superior net goal for the client.

Many real estate agents will suggest to “stay in your wheelhouse.”  To me, that statement presents issues for prospective clients on a number of levels.  By no means do I advocate that the agent should be involved in the pre-approval process for a mortgage loan – but it is fundamental to the backbone of the real estate profession that we understand the nuances of critical tasks we entrust as referrals to a loan originator.  Here are some basic items that brokers in any market segment should understand:

1)     A footprint of the mortgage loan program landscape and how to get information from the client so a referral is beneficial for everyone (i.e. a private bank loan originator who may leverage certain appropriate products will have a completely different lens than one who specializes in reverse mortgage products etc.)

2)     Knowledge of how and where mortgage loans are qualified, processed, and closed.  If a real estate agent knows that a certain set of documents are needed for a solid pre-approval, they should arm their clients with the information to make the transaction successful from the beginning in addition to what tools and overrides are available to the mortgage company to obtain the desired result.  Penrith Home Loans (disclosure: owned by my company, Windermere) has remarkable access and flexibility to meet timelines and its leadership is as hands-on as local originators may need them to be.

3)     Overarching knowledge of financial markets and mortgage loans.  If a broker does not have a grasp on financial indicators, they have lost touch with being a touchstone and central figure of a transaction.  Maintaining thought leadership is part of the real estate broker’s role and that expectation increases as the level of sophistication of a transaction increases as well.

As a client, here is a fun test for your real estate professional.  You’ll know you’ve selected a leading real estate advisor if they know the following answers:

1)     How many members are there of the Federal Reserve Board and what are they called?
Answer: The seven members of the Federal Reserve Board are called Governors

2)    What is a tranche?
Answer: Tranches are segments created from a pool of securities—usually debt instruments such as bonds or mortgages—that are divided up by risk, time to maturity, or other characteristics in order to be marketable to different investors.

3)     How are mortgage interest rates determined?
Answer: The Federal Reserve, bond market, Secured Overnight Finance Rate, Constant Maturity Treasury and the health of the economy and inflation all affect mortgage rates.

4)     What economist has a real estate index named for him?
Answer: Yale Economist Robert Shiller.  The S&P CoreLogic Case-Shiller Home Price Indices are a group of indices that measure real estate or housing prices. They track changes in residential home prices throughout the United States.

5)     What bureau in the US Government supervises consumer finance regulation?
Answer: The CFPB was created to provide a single point of accountability for enforcing federal consumer financial laws and protecting consumers in the financial marketplace.

6)     BONUS: What company is America’s largest loan servicer?
Answer: Wells Fargo with a $962 billion portfolio.  The bank plans to reduce its servicing to concentrate more on bank customers and minority communities.  Loan servicing is described as the administrative aspects of a loan from the time the proceeds are dispersed to the borrower until the loan is paid off.

This quiz is part of assessing the overall fitness of the real estate professional to know macro finance influencers that contribute to stellar client relations experience and representation.  It's nice to be lender-trained.  Enjoy!

Truth in Title - The Anatomy of a Winning Title and Escrow Partnership

ADVISORY: This particular segment is longer than usual, but worth a read.  It is a date-stamped opinion from my recollections circa 2021 - it also reflects the amazing people, culture, and time of a  specific era of the company that has since changed.
Many clients and industry partners have asked “why are you such an ‘evangelist’ for your title partner?”  The answer is not because I previously worked for the company – but the all-around approach that encapsulates the client experience is what I fondly remember far before I ever worked there.  With that disclosure, here is simple reasoning as to why a choice in title insurance and escrow services is a fundamental capstone that rounds out the equation of solid client representation.

GREAT ESCROW
This is now a basic expectation within the transaction landscape.  Part of that service is accessibility and when and how an escrow officer is willing to interact with a real estate broker, lender, or client.  I’ve often noted that our collective share of escrow officers in Portland is smaller than the membership of our most exclusive private golf club, the Waverley.  This is true.  Within the escrow club is a much smaller set of truly gifted individuals who transcend that of masters of numbers and attention to detail and have the human touch where they weave the real estate broker into the conversation to make the client feel completely confident that they are surrounded by total competence.

INTERPRETIVE GUIDANCE
Each escrow company has what was formerly known as “customer service.”  Customers shop at a grocery store, but clients use the services of an escrow company.  Not all client services groups are created alike.  The best ones have a team of true data scientists who are able to help real estate brokers and lenders with special projects to find solutions to their business needs.  In some markets, the regulatory framework requires the broker to pay for information, but on many occasions data has been used to source hidden “product” to assist brokers in finding their clients a match.  Ask me sometime about a research project using a GIS specialist for locating the ideal zone for a client within a country club for an industry partner in another market.  Client services teams refine data to make it manageable and usable for a wide array of purposes and good ones succeed in matching those expectations.

EXCEPTIONAL TOOLS
Title companies are famous for repackaging data that is readily available to interpret via a variety of platforms.  However, there are standouts that every title client development officer (sales is so pedestrian) should have at their fingertips.  A solid rule-of-thumb is to master three tools – just as we advise new brokers to do with the barrage of product arrows that are hurled in their direction.  As these are almost always rebranded filters of like-information, choose the user interface that works in concert with your desired consumer client experience.

ACCESS
Your title company is neutral in many ways as it serves many masters.  That neutrality offers an incredible opportunity for them to act as a “connector” as relationships are free but take time to nurture and develop.  One such example is having an out-of-market expert on a certain client segment.  Upon learning that my former company had an expert on Asia-Pacific marketing, I invited her to the Portland market under the banner “Director – Insights and Analysis - Asia-Pacific, Global Markets Practice.”  In one day, she participated in a grueling schedule to bring her message to over 300 real estate professionals.  And, I was able to fulfill on my brand promise that I still use in my real estate practice today to “give them something they can’t get anywhere else.”

MARKET INTELLIGENCE
At my company, Windermere Realty Trust, we are blessed to have an in-house economist, best-of-class education on social media and other marketing tools, and the counsel of extraordinary wisdom in the comparative Ivy League quality team of managing principal brokers.  Title partners where C-suite personnel are visible and available for dialogue and sharing best practices are extremely valuable and create an environment which elevates the real estate profession as a whole.  Investigate how regional and national title company leadership are participating in growing and sustaining business of their local operations.  These individuals see hundreds of markets in action, and have incredible insight to macro trends and how they will affect the local marketplace.

OFFICE ENVIRONMENT
In a post-Covid world, nothing can replace human interaction.  This is especially true with something that has the gravitas of transferring large assets like property.  Clients are curious, nervous, excited and the emotional spectrum runs the gamut.  The goal of the escrow office is to reflect the market it serves and to assure the consumer that their transaction is in good hands.  We designed a 10-point plan that summarized the escrow experience from “introducing the transaction” to the closing and beyond.  Security, privacy, and a dash of relevant local artist works and furniture (in a private client setting) all contribute to the recipe of a positive client experience.

DON’T LET RESPA BITE YOU
Above all else – adhere to and beware of title partners who offer a pot of gold for your business.  In California, the environment is heavily regulated to ensure that companies are not buying business.  The reputation of the title company should be as such as a client feels the interaction is so natural that they expect the same experience in future transactions.  Intellectual capital and idea sharing are free, and that deep knowledge and close connection with the escrow team, client development officer, and local/regional/national leadership is all you need in your toolbox to be successful.  Local regulators have not been beneath asking for proof of payment for advertising and events, measuring size of ads proportionate to payment, other items that may seem easy to slide under the radar.  Therefore, short term benefit and bragging that the “title company will pay for this or that” is a sure sign of the suspect character of a real estate broker and the financial fine, professional reprimand, and damage to reputation is not worth the risk.

AND FINALLY – COMPANY REPUTATION AND FINANCIAL STRENGTH
I’ll admit, my former employer is the highest ranking Fortune 500 title insurance company.  While that is a benefit, this company takes its business very seriously and pays out “losses” if they are incurred to the consumer with precision accuracy.  This cannot be said for all companies in this sphere.  In recent times, a new title player emerged that was funded by a private equity firm (the investment exit strategy for these types of companies is always acquisition) and therefore the interest is not with the industry partner or public’s trust, but with acquisition in mind fueled by a take-no-prisoners ravenous mentality.  Loss reserves of public companies are well-documented and while losses are infrequent, public companies can back up their title insurance commitments and claims.  Selecting a title insurance company with documented reserves and a rich history is as much a benefit to the client as it is to the real estate professional.  An incorrect title vendor decision and an unpaid or heavily disputed loss will cloud a real estate broker and is a concept of reputation management that we collectively never truly analyze.  Thinking long-term is a necessity with any vendor selection and most of mine have been with me for my entire time in the real estate sphere.

If you haven’t already guessed by now, my example of stellar performance in escrow services and title insurance was of Fidelity National Title and their market leading teams in client, development, and escrow services.  My 20-year relationship with the company on both the inside (as VP Corporate Relations) and the outside (both before and after as client) reflects on a very special place in time when FNT Portland’s Jeff Meucci was the undisputed visionary as the company’s sales organization leader prior to his promotion within the operation.  May we only have more thought leaders like him within our market and throughout the industry.

Surrendering to Good Manners - a Thank You note?

“Write a thank-you note the minute you receive a gift or return home from a party.”  Was it Babe Paley who coined this phrase?  Simple as it may be, a thank you note can hold a reputation in limbo for years.

A golden opportunity exists to share a simple act of kindness for $1 (postage and card).  Recently I conducted an experiment with no expectations.  I separately took three individuals to a lunch because I wanted to learn more about them.  Each was a very different individual and the luncheons shined the light on so many unique attributes each person had to offer in their respective professions.  At some point, I knew I would see each of them in a different future circumstance - and I was curious to know how they would respond to the lunch and invitation.

Time passed by . . . a month passed by . . . and not one thank you note appeared to even acknowledge that we had met and had really great exchanges of information and learned a great deal in the process.  I was shocked to say the least.

One of my dear friends is the absolute wizard of thank you's - right down to the stamp she selects.   I had invited her over for a Christmas Luncheon and received a note that recognized things she enjoyed about the afternoon with friends - with a special eye to comment on furnishings, place cards, and the meal itself.  On the hand-addressed (and hand return addressed) envelope was an Ellsworth Kelly postage stamp - one of my favorite artists.  Now that's taking thank you's to a new level of Disney detail.

Writing a thank you note is an act of simple courtesy and is a perfect entre to continue a conversation and build a relationship.  So - next time you find yourself receiving a gift, noticing something out of the ordinary, or being a guest at a lunch or function - consider the next step to reinforce your gratitude with a note, or prepare for being possibly "written off!"

Know Thy Private Social and Country Clubs - Enhancing Your Client's Experience

Here's a case study.  Your clients are moving to your city.  They are a couple with a variety of interests and are both professionals in their respective fields - but wouldn't mind meeting a new circle of friends and perhaps also build their business reach within the community.  It's hard to break into a new community and there are some great volunteer opportunities and business groups available.  They had been members of a country club and a social club in the city they are leaving.  As a real estate broker, how can you help? It's as easy as these five steps:

#1 You are their first line of defense in learning their community.  As real estate professionals, our business transcends far beyond the elements of a transaction where we have a responsibility to help ease the burden of any transition - whether it's a new neighborhood OR a new city.  Your clients have identified their desire to create a similar environment in the new city.  Research and having an answer to questions related to wants or needs is a basic point of entry in our professional roles.

#2 Vetting the club.  It's obvious that private clubs attract different audiences and the point of entry is different for each one.  For example, in Portland one club requires a sponsor and nine seconders.  Further, their sponsor questionnaire poses such questions as to your level of connection with the potential member - "has the candidate dined in your home?" for example.  A club in Washington D.C. is the home of literary intelligencia while another may be known for having a world-class art collection and attracts individuals with those interests.  There's something for everyone - and it's the real estate broker's responsibility to know the difference and requirements for points of entry.

#3 Vetting x2 - the bones.  Knowing someone (if not yourself) on the inside is of paramount importance.  Nationwide, we're experiencing a shift in relevance for some formerly-prominent institutions. Financial health of the club is a major question in evaluation, as you don't want your recommendation to close its doors three months after your clients pay a significant initiation fee.  Attrition rate for membership is also an interesting question: what is the percentage of your membership that have been members for five years or longer?  If someone doesn't get what they want out of the club experience, they usually resign in 1-2 years.

#4 Vetting x3 - the members.  Getting back to our fictional clients intent - a new circle of friends and to potentially build business.  The club membership experience is organic and different for each person.  However, there are several red flags: A) a social or country club that has to advertise in social media or traditional channels is on a sure path to either closure or an enormous special assessment as it connotes pure desperation and obvious the membership cannot sustain itself, and, B) NETWORKING.  If this word appears in any membership information packet - RUN!  Your client's experience at their club is very personal - introductions are made to develop friendships that can often blossom into a business relationship based on trust over time.  For example, one of my attorneys is from a friendship and I know he is at the top of his game professionally and my jeweler is a similar example.  Those who expect to have business thrown at them by virtue of membership will be disappointed unless that is the ethos of the club's culture.

#5 Activities and Services.  Here are some questions to ask of staff or members of the Membership Committee.  A) is the chef a protégé of a Michelin-starred or James Beard award winner, or one themselves?  In the Portland market, one of these chefs will set the club budget back $200,000 or so annually (fully loaded), so get ready to pay the price for this excellence in dues.  B) is the wine list curated by actual experts or member enthusiasts?  Insight to this would be if the club has received something along the lines of a Grand Award from Wine Spectator - and the most expensive wine is not always a barometer of the best offering.  C) what are the major areas of interests of the members?  Is it a women-only club existing to provide a venue for bridge games and a great lamb shank dinner on a Thursday night; or, a place that caters exclusively to tennis players who may enjoy a good burger by the pool in a hidden urban oasis?

All food for thought - will our fictional couple find what they desire based upon your help?  Basic rule of thumb - find what makes the client comfortable but be able to provide basic guideposts that make the search successful and enriching in the end.

Descriptives in Action - Maybach Shines as an Example

Descriptives are the essence of what excites a consumer - intelligently informing the ultra-high net worth client of what to expect with their purchase and offering an idea of what it feels like to experience a brand promise in action.  Mercedes' Maybach 2020 video does just that . . . bringing views and potential customers into a preview that frames expectations with masterful precision.  In this video, the real story beyond the fluff begins at 1:45 and is worth the 16 minutes to watch.

The definitions outlined in the interviews and with the presenter himself to express the feeling the consumer should ultimately experience are priceless.  I noticed when I took a walk on my favorite street in Washington DC that one of the longtime residents had just freshly purchased one of these cars and I asked him, "what made you decide on this?"  His first answer was "safety" followed by comfort, amenities, and a conversation piece with peers.  There still is credence to what we uncovered at a focus group years back - the consumer is willing to pay if you can deliver "something they can't get anywhere else."

Translate the car to real estate for a moment.  It takes a little more thought, but how are our broker peers appropriately extolling the virtues of the properties they represent?  The essence of true luxury marketing is to predict, have an answer for any scenario, and provide on a platter an idea of how the buyer can actualize their dreams through the purchase.  In fact, in a world where a continual barrage of opinion and choice is foisted upon the consumer of luxury goods and property selections, it's their expectation that you'll be creative enough to reach into their minds and showcase something in a way that resonates "I can't live without this."
 

Much Ado About Something - But Nothing. The Truth About AI

Artificial Intelligence.  The name says it all . . . artificial.

Clients and real estate brokers alike should be insulted at the mere mention of this technologicane - as the AI platform has but one purpose: to dumb Americans down.

Why such a reaction?  It is not because this platform has passed the bar exam or some such other feat of note, but because it exploits a reasonable but not perfect facsimile of what all of us were given in different ways - the artform to critically think to the best of our abilities and reasonably decipher a creative and unique solution.  It's rather comical to sit on the sidelines to see the host of early adopters clamor to peddle the white noise for what AI truly will evidence itself as.  Beware of those who look to instill the fear of what technology could bring to light.  Right now, this is rampant in the real estate sector.

It's one thing to create flowery language for a listing or that ideal sentence or subject header for an email, but it isn't real and ChatGPT, BARD, nor any of the other platforms rushing to capitalize on our collective laziness of our society is really hurting the future - the development of children's minds to not be critical thinkers but instead participate in a virtual cattle call which will render itself useless.  At this juncture, clients are still smarter than to succumb to messaging that sells little more than air.

Any one of us can learn to master any social platform if we apply ourselves, but the real magic is what the human mind can conjure up that will summarily always win.  While competitors and peers anguish over word choice or that special eye to deliver a creative zing that comes easily to you because you were trained to think for yourself - just think of it as job security as no machine can ever outpace the power of human potential.

The Video by which all Real Estate Marketing Can Be Judged

You have to hand it to Real Estate Agents Joyce Rey and Jade Mills in Beverly Hills for this captivating video presence for the home which of course is recognized for its appearance in the TV show "Beverly Hillbillies."  The Kirkeby Estate was rebranded Chartwell | Bel Air by the brokers and this video is nothing short of an emotional roller coaster for those who enjoy viewing beautiful properties.

Regardless of its $150 million price, the video showcases in rare form the essence of what it truly feels like to commune with nature in the middle of a major metropolitan area.  The lush and diverse landscaping, artistic movement of water features, and a true portrayal of what it means to "live the house" from day to night is something that can be scaled for different price points and areas.  While this offering is definitely befitting the essence of a Hollywood production, it also dissects the property to share its intimacy and numerous purposes - from meditation to a major soiree'.

Click the link above to experience the sheer joy of appreciating a curated property that could easily engulf the owner's passions of any type - plein-air painting, art collection, sports, gardening - the property indeed offers options on numerous levels.  Once again, real estate leaders in the L.A. market have produced a glimpse into the surreal by which all future production-quality features of property can be measured.  Bravo!

Cindy Sherman | Something for the Home

Cindy Sherman

This work can be construed as conversational, thoughtful, outlandish, and perhaps something one would not want to run into in a dark alley in some cases.  A recent site visit to The Broad in LA gave unique perspective as the artist uses herself as the model for photography.  Imagine placement in a foyer or somewhere else to spark discussion from guests.  Enjoy!